One key conclusion of the Capital Asset Pricing Model is that the value of an asset should be measured by considering both the risk and the expected return of the asset, assuming that the asset is held in a well-diversified portfolio. The risk of the asset held in isolation is not relevant under the CAPM.

Answer the following statement true (T) or false (F)


True

Business

You might also like to view...

Many changes and improvements have been made to polygraph testing. What does the modern polygraph detect?

a. half-truths b. lying c. nervousness d. intent to act unethically

Business

An agreement to keep the same price but reduce prices in the future is often a successful response to which of the following tactics used by buyers?

A) budget limitation tactic B) take-it-or-leave-it tactic C) let-us-split-the-difference tactic D) "if...then" tactic E) "sell low now, make profits later" tactic

Business

One significant benefit of leasing is that you don't have to worry about excessive wear and tear on the car

Indicate whether the statement is true or false

Business

Which of the following was set up primarily to provide long-distance telephone service after the breakup of the Bell System in the early 1980s?

A) AT&T B) RBOCs C) both A and B D) neither A nor B

Business